Arteris (NASDAQ:AIP) Shares Down 9.1% - Should You Sell?

Key Points

• Arteris shares fell 9.1% to about $20.63, with trading volume 71% below the average session volume.
• Despite the decline, analysts maintain a generally positive outlook: five rate the stock Buy and one Sell, resulting in a “Moderate Buy” consensus and an average price target of $41.00.
• The company missed quarterly EPS expectations, reporting a loss of $0.10 per share versus estimates of $0.04, while insiders sold more than 1.2 million shares worth approximately $39.2 million during the last quarter.

Arteris, Inc. (NASDAQ:AIP - Get Free Report) was down 9.1% during mid-day trading on Monday . The stock traded as low as $20.83 and last traded at $20.6260. Approximately 207,873 shares were traded during trading, a decline of 71% from the average session volume of 726,715 shares. The stock had previously closed at $22.69.

Analysts Set New Price Targets

A number of research firms recently commented on AIP. Weiss Ratings raised shares of Arteris from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, August 21st. Jefferies Financial Group upgraded Arteris from a "hold" rating to a "buy" rating and upped their target price for the stock from $35.00 to $50.00 in a report on Friday, August 7th. Oppenheimer started coverage on shares of Arteris in a report on Thursday, July 16th. They issued an "outperform" rating and a $40.00 price target on the stock. Roth Capital started coverage on Arteris in a research note on Tuesday, August 4th. They set a "buy" rating and a $40.00 target price on the stock. Finally, Rosenblatt Securities restated a "buy" rating and set a $38.00 price target on shares of Arteris in a research note on Friday, August 7th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, Arteris currently has an average rating of "Moderate Buy" and a consensus target price of $41.00.

Arteris Stock Performance

The firm's fifty day simple moving average is $27.82 and its 200 day simple moving average is $27.78. The company has a market capitalization of $1.02 billion, a PE ratio of -23.87 and a beta of 1.91. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.57 and a quick ratio of 1.57.

Arteris (NASDAQ:AIP - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.06). Arteris had a negative net margin of 46.70% and a negative return on equity of 295.96%. The company had revenue of $24.13 million for the quarter, compared to analysts' expectations of $23.48 million. On average, research analysts predict that Arteris, Inc. will post -0.68 EPS for the current year.

Insiders Place Their Bets

In related news, major shareholder Bayview Legacy, Llc sold 100,000 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $20.75, for a total value of $2,075,000.00. Following the completion of the transaction, the insider directly owned 8,229,071 shares in the company, valued at $170,753,223.25. The trade was a 1.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Saiyed Raza sold 70,000 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $30.01, for a total transaction of $2,100,700.00. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,207,704 shares of company stock worth $39,166,487. Corporate insiders own 23.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. WINTON GROUP Ltd purchased a new stake in shares of Arteris during the 2nd quarter worth about $384,000. Spark Investment Management LLC purchased a new position in shares of Arteris in the 2nd quarter valued at about $1,074,000. Arizona State Retirement System purchased a new position in shares of Arteris in the 2nd quarter valued at about $442,000. Corient Private Wealth LP acquired a new position in Arteris in the 2nd quarter worth about $471,000. Finally, California State Teachers Retirement System raised its holdings in Arteris by 105,728.3% in the 2nd quarter. California State Teachers Retirement System now owns 1,807,548 shares of the company's stock worth $87,829,000 after purchasing an additional 1,805,840 shares during the period. Institutional investors and hedge funds own 64.36% of the company's stock.

Arteris Company Profile

Arteris, Inc is a semiconductor intellectual property company that provides network-on-chip (NoC) interconnect and system IP for the design of complex systems-on-chip (SoCs). Its technologies help semiconductor and electronics companies connect processor cores, memory, peripherals and other functional blocks within a chip while supporting data movement, system integration and design reuse.

The company's product portfolio includes FlexNoC interconnect IP, Ncore cache-coherent interconnect IP and CodaCache system IP.

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